Human capital formation also relates to human-resource
development. Human resource is an active means of production. The
optimum allocation of resources of a country depends on the availability of
human resources. The term human capital formation refers to the "process
of acquiring and increasing the number of persons who have the skills,
education and experience which are critical for the economic and the
political development of a country. Human capital formation is thus
associated with investment in man and his development as a creative and
productive resource (Harbisson. F.H.1992). The concept of human resource
has many different meanings both manpower and human resources refer to
and mean people. Human resources can be equated with 'labour' in the sense
of a factor of production, or simply production. Human resource may also
be viewed as a kind of natural resources or a people resource just as we have
mineral and forest resources (Pattern,T.H., 1971)
According to T.W. Schultz, there are five was of developing human
resources:
1. Health facilities and services, broadly conceived to include all
expenditures that affect the life expectancy, strength and stamina and
vigor and vitality of the people.
2. On the job training, including old type apprenticeships organized by
firms.
3. Formally organized education at the elementary, secondary and
higher levels.
4. Study programmes for adults that are not organized by firms
including extension programmes notably in agriculture.
5. Migration of individuals and families to adjust to changing job
opportunities. To this list may be added the import of technical
Nanda Lal Darnal
Teaching Assistant
Tribhuwan University
Hyatrung Jharana Campus
Shakranti Bazaar-1,Terhathum
assistance, expertise and consultants. In its wider sense, investment
in human capital means expenditure on health, education and social
services in general; and in its narrower sense, it implies expenditure
on education and training. It has become conventional to talk about
investment in human resources in its narrower sense became
expenditure on education and training is capiable of measurement as
compared to the social services (Jhingan, M.L.,2011. The economics
of development and planning.)